SUBSTITUTE ORDINANCE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. Section 2-92-330 ofthe Municipal Code of Chicago is hereby amended by by inserting the language underscored, as follows:
2-92-330 Contracts - Percentages of city and project area residents work hours -Enforcement.
(a-1) For purposes of this section,
"City residents" means persons domiciled within the city.
"Project area residents" means persons domiciled within that part of the city designated as the project area in the information for bidders issued by DPS.
"Domicile" means an individual's one and only true, fixed and permanent home and principal establishment.
"Eligible residents" means city residents and project area residents.
(a) For any construction project advertised, or if not advertised, awarded, by the city that has an estimated contract value of $100,000.00 or more, and where not otherwise prohibited by federal, state or local law, the total hours worked by persons on the site of the construction project by employees ofthe contractor and subcontractors shall be performed (i) at least 50 percent by city residents; and (ii) at least 7.5 percent by project area residents. Work hours performed by project area residents shall be considered to be work hours performed by city residents for purposes of calculating the minimum work hour percentage required to be performed by city residents.
These minimum percentages of work hours for eligible residents shall not be understood as limiting or deterring the fuller utilization of eligible residents beyond these levels, but are intended instead as minimum requirements. Contractors shall make good faith efforts to utilize qualified eligible residents in unskilled and skilled labor positions. The chief procurement officer shall separately monitor the utilization of eligible residents in skilled and unskilled positions, and shall report his findings to the city council committee on the budget and government operations when substantially all of the construction contracts for each construction season have been closed. The chief procurement officer shall also report whether he has determined that separate minimum percentages of eligible residents are warranted for skilled and unskilled labor positions.
The chief procurement officer shall develop standards and procedures for reducing or waiving these minimum percentages of work hours for eligible residents when a bidder or contractor can
demonstrate the impracticality or excessive cost of complying with these percentage levels for particular contracts or classes of employees. Except as otherwise provided in the chief procurement officer's standards and procedures, a waiver or reduction shall be deemed appropriate if a contractor or subcontractor has unsuccessfully solicited a sufficient number of eligible residents to perform the work identified in the bid solicitation and has documented such effort to the satisfaction ofthe chief procurement officer. In addition, such standards and procedures shall require that a contractor seeking a waiver or reduction shall have provided timely notice ofthe need for qualified eligible residents to an appropriate source of referrals, which source shall be entitled to comment on any waiver or reduction application. If the chief procurement officer determines that lesser percentage standards are appropriate with respect to a particular contract subject to competitive bidding prior to the bid solicitations for such contract, such bid solicitations shall include a statement of such revised standards. The chief procurement officer shall file quarterly reports of his determinations on all reduction or waiver requests made pursuant to this paragraph with the city council committee on the budget and government operations.
(b) Implementation of the requirements established in subsection (a) of this section will be achieved by including in contracts and subcontracts described therein the following language:
The contractor and all subcontractors that perform work on the site on the construction project undertaken pursuant to this contract shall comply with the minimum percentages of total work hours performed by eligible residents as specified in Section 2-92-330 ofthe Municipal Code of Chicago.
Project's MBE/WBE/Chicago & Project Area Residency Requirements should be evaluated several times while the protect is still active.
The contractor shall provide for the maintenance of adequate employee residency records to ensure that eligible residents are employed on the project The contractor and subcontractors shall maintain copies of personal documents supportive of every eligible resident employee's actual record of residence.
Weekly certified payroll reports (U.S. Department of Labor Form WH-347 or equivalent) submitted to the commissioner of the supervising department in triplicate, shall identify clearly the actual residence of every employee on each submitted certified payroll. The first time that an employee's name appears on a payroll, the date that the company hired the employee should be written in after the employee's name.
Full access to the contractor's and subcontractors' employment record shall be granted to the chief procurement officer, the commissioner of the supervising department, the Superintendent of the Chicago Police Department, the inspector general, or any duly authorized representative thereof. The contractor and subcontractors shall maintain all relevant personnel data in records for a period of at least three years after final acceptance of the work.
At the direction ofthe supervising department, affidavits and other supporting documentation will be required ofthe contractor to verify or clarify an employee's actual address when doubt or lack of clarity has arisen.
Good faith efforts on the part of the contractor to provide utilization of eligible residents shall not suffice to replace the actual, verified achievement ofthe requirements of this section concerning the work hours performed by eligible residents. Nothing provided in this paragraph shall be construed to prevent the chief procurement officer from considering such good faith efforts as appropriate for reducing or waiving the minimum percentages of work hours for eligible residents requirement, pursuant to Section 2-92-330fa) ofthe Municipal Code of Chicago.
CDOT&eateinitiate a rating system, similar to IDOT. which would rank companies according to their overall performance including their effort to increase MBE/WBE percentages and other hiring goals.
When work is completed, in the event that the city has determined that the contractor failed to ensure the fulfillment of the requirements of this section concerning the work hours performed by eligible residents or has failed to report in the manner as indicated above, the city will thereby be damaged in the failure to provide the benefit of demonstrable employment to eligible residents to the degree stipulated in this section. Therefore, in such a case of non- compliance it is agreed that 1/20 of 1 percent (.05%), 0.0005, of the approved contract value for this contract shall be surrendered by the contractor to the city in payment for each percentage of shortfall toward the stipulated residency requirement Failure to report the residency of employees entirely and correctly shall result in the surrender of the entire liquidated damages as if no eligible residents were employed in either of the categories. The willful falsification of statements and the certification of payroll date may subject the contractor or subcontractors or employee to prosecution. Any retainage to cover contract performance that may become due to the contractor pursuant to Section 2-92-250 of the municipal code of Chicago may be withheld by the city pending the chief procurement officer's determination whether the contractor must surrender damages as provided in this paragraph.
Nothing herein provided shall be construed to be a limitation upon the "Notice of Requirements for Affirmative Action to Ensure Equal Employment Opportunity, Executive Order 11246" and "Standard Federal Equal Employment Opportunity, Executive Order 11246", or other affirmative action required for equal opportunity under the provisions of this contract.
(c) The monetary damages stipulated in subsection (b) hereof may be adjusted by the chief procurement officer to represent a larger fraction of the approved contract value, if the chief procurement officer determines after a review of contractors' compliance with this section that said damages are insufficient to secure compliance herewith. In no event may the damages be adjusted to a lower fraction. Any such change must be made effective for all contracts advertised as of a specific date chosen by the chief procurement officer and must be made prior to said advertisement.
In addition to assessing the monetary damages stipulated in subsection (b) hereof, the chief procurement officer may, in lieu of declaring the contractor to be a non-responsible bidder, require the contractor to post a surety bond or other appropriate security in an amount representing ten percent of the approved contract value for subsequent contracts on which the contractor bids, which the contractor shall agree to forfeit in its entirety in the event that full compliance with the requirements of this section is not achieved during the performance ofany future contract that the contractor enters with the City of Chicago.
- Any person who is employed in a construction project subject to the provisions of this section who knowingly supplies false information concerning his or her residence shall be subject to a fine of not more than $500.00 for each offense, and imprisonment for a period not to exceed 30 days. Any person found to have violated this section shall also be barred from employment on any construction project subject to this section for a period of five years.
- The monetary damages stipulated in subsection (b) hereof shall be used for establishing worker training programs.
- The chief procurement officer is authorized to adopt rules and regulations for the proper administration and enforcement of this section.
(Prior code § 26-27; Amend Coun. J. S-18-94, p. 51426; Amend Coun. J. 7-19-00, p. 38206, § 1; Amend Coun. J. 4-10-13, p. 50868, § 1)
Leslie A. Hairston Alderman, Fifth Ward
SECTION 2. This ordinance shall take effect upon passage and approval.